Trey entered into a three-year lease of a luxury automobile on January 1, 2019, for use 95% in business and 5% for personal use. The FMV of the automobile at the inception of the lease was $65,000, and Trey made 12 monthly lease payments of $1,050 in 2019 and 2020. (Click the icon to view the Lease Inclusion Dollar Amounts for Automobiles with a Lease Beginning Calendar Year 2019.) Read the requirements. Requirement a. Before considering the effects of any lease inclusions amounts, what amount of lease payments are deductible in 2019 and 2020? Amount of deductible Year lease payments 11,970 2019 2020 11,970 Requirement b. What portion, if any, of the "inclusion amount" must reduce Trey's lease deduction in 2019 and 2020? (Round your answers to the nearest whole dollar.) In 2019, Trey must reduce his annual lease payment deduction by In 2020, Trey must reduce his annual lease payment deduction by Requirement c. How would your answers to Parts a and b change if the FMV of the auto was $15,100 and the monthly lease payments are $325? (Round your answers to the nearest whole dollar. Enter a "0" for any zero amounts.) Amount of deductible Year lease payments 2019 2020 is required because the E A fixed reduction $15 for each year continue to the next question. ? No reduction Reference - Lease Inclusion Dollar Amounts for Vehicles With a Lease Term Beginning in Calendar Year 2018 REV. PROC. 2018-** TABLE 4 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2018 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th and Later 1 3 5 5 6 4 9 13 16 19 7 15 22 27 31 10 21 31 37 44 12 27 40 48 56 $50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 $51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 15 33 49 59 68 18 39 58 69 81 20 45 67 80 93 23 51 76 91 105 26 57 85 101 117 30 66 98 118 135 X Requirements a. Before considering the effects of any lease inclusions amounts, what amount of lease payments are deductible in 2019 and 2020? b. What portion, if any, of the "inclusion amount" must reduce Trey's lease deduction in 2019 and 2020? c. How would your answers to Parts a and b change if the FMV of the auto was $15,100 and the monthly lease payments are $325? Print Done Trey entered into a three-year lease of a luxury automobile on January 1, 2019, for use 95% in business and 5% for personal use. The FMV of the automobile at the inception of the lease was $65,000, and Trey made 12 monthly lease payments of $1,050 in 2019 and 2020. (Click the icon to view the Lease Inclusion Dollar Amounts for Automobiles with a Lease Beginning Calendar Year 2019.) Read the requirements. Requirement a. Before considering the effects of any lease inclusions amounts, what amount of lease payments are deductible in 2019 and 2020? Amount of deductible Year lease payments 11,970 2019 2020 11,970 Requirement b. What portion, if any, of the "inclusion amount" must reduce Trey's lease deduction in 2019 and 2020? (Round your answers to the nearest whole dollar.) In 2019, Trey must reduce his annual lease payment deduction by In 2020, Trey must reduce his annual lease payment deduction by Requirement c. How would your answers to Parts a and b change if the FMV of the auto was $15,100 and the monthly lease payments are $325? (Round your answers to the nearest whole dollar. Enter a "0" for any zero amounts.) Amount of deductible Year lease payments 2019 2020 is required because the E A fixed reduction $15 for each year continue to the next question. ? No reduction Reference - Lease Inclusion Dollar Amounts for Vehicles With a Lease Term Beginning in Calendar Year 2018 REV. PROC. 2018-** TABLE 4 DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2018 Fair Market Value of Passenger Automobile Tax Year During Lease Over Not Over 1st 2nd 3rd 4th 5th and Later 1 3 5 5 6 4 9 13 16 19 7 15 22 27 31 10 21 31 37 44 12 27 40 48 56 $50,000 51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 $51,000 52,000 53,000 54,000 55,000 56,000 57,000 58,000 59,000 60,000 62,000 15 33 49 59 68 18 39 58 69 81 20 45 67 80 93 23 51 76 91 105 26 57 85 101 117 30 66 98 118 135 X Requirements a. Before considering the effects of any lease inclusions amounts, what amount of lease payments are deductible in 2019 and 2020? b. What portion, if any, of the "inclusion amount" must reduce Trey's lease deduction in 2019 and 2020? c. How would your answers to Parts a and b change if the FMV of the auto was $15,100 and the monthly lease payments are $325? Print Done